Nifty 50 Index
Education

Part 2 Ride The Big Moves

32
Advantages of Option Trading

Leverage:
A small premium can control a large amount of the underlying asset.

Flexibility:
You can profit in bullish, bearish, or neutral markets using different strategies.

Defined Risk:
Option buyers’ risk is limited to the premium paid.

Income Generation:
Selling options can create consistent income streams through premiums.

Hedging:
Options protect existing positions against adverse price movements.

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